What are the reasons for introducing the directors' declaration requirement in the company law?

Question

The directors' declaration requirement is currently contained in section 295(4) of the Corporations Act 2001.

Answer 1

Corporate fraud and the public being ripped off are the reasons. The directors/ CEO claimed no knowledge, now they can no longer hide behind the claim of not knowing what the firm they are in control of is doing. It just closed a legal loophole.